Bryan roberts, Planet Retail, presentation at Building Supermarkets 2010.

1. Update on market activity Building Supermarkets, July 2010 Planet Retail Ltd

3. Where the Big 4 (Big 5?) are going

4. Whither the discount threat?

5. ‘New’ entrants & partnerships

6. Likely drivers & impact on store development

9. Big 4 (Big 5?) all pursuing multi-channel .

10. Discounters here to stay despite short-term ‘problems’.

11. Non-traditional food retail is where the growth is.

13. UK food retail – the non-traditional view

14. Strategies of the major players

16. 2010 best case: 5 million sq ft.

19. Tesco Bank and Tesco Mobile desks also appearing in larger stores.

20. Aim of reaching 2,000 Express c-stores (1,100+ currently).

21. Lack of public ambitions for Homeplus.

22. Tesco Extra annual growth likely to slow to a trickle.

25. Five year target of increasing Asda Livings from 25 to 150 units.

26. Netto deal has enabled Asda to smash target of 100 smaller supermarkets (up from current 25).

27. 193 8,000 sq ft Asdas will come on stream regulators permitting.

28. Non-food leadership will require more substantial investment/acquisitions.

31. New openings focused on North & Scotland.

32. Smaller supermarkets & c-stores a focus of growth.

33. Expansions of existing stores.

34. Online & financial services a priority.

35. Looking to build on progress in non-food.

38. Small stores now very much an acceptable alternative to standard big boxes as it journeys from “National to Nationwide”.

39. No e-commerce offer to accommodate (yet?).

42. Strong uplift in sales from rebranded stores.

43. Somerfield deal expanded presence in supermarkets.

44. First signs of e-commerce (electricals & furniture kiosks being piloted in 3 larger stores).

46. Morrisons is the only exception to prove the e-commerce rule.

47. Non-food key, but only Tesco & Asda making specialist play.

48. Click & Collect becoming commonplace.

49. Growing importance of ancillary services such as banking, foodservice, photo, etc.

50. Sustainability remains a major factor despite the downturn.

52. Is the discount threat fading?

54. New stores: 2008 – 55; 2009 – 15.

55. 2008: Lidl states aim of 40 – 50 new stores per year.

56. New stores: 2008 – 49; 2009 – 36.

57. 2008: Netto states: “Plans to open around 1,000 additional stores in the long-term”.

59. Aldi on track for 430 units by end of the year.

60. Combined total of 1,000 stores could conceivably reach at least 2,000.

61. Main limit on growth: site availability, particularly for the more fastidious Aldi.

63. Some unfamiliar names set to grow the fastest Forecast % growth , 2010/15 Source: Planet Retail Ltd – www.planetretail.net

64. Many non-trad retailers looking to build food assortments

67. 11 stores trading so far.

68. Heralded the opening of the first sub-3,000 sq ft c-store in Cambridge in June 2010.

71. Tesco’s ubiquity will create more problems for them.

72. Big box bottleneck encouraging store extensions & mezzanines.

73. All retailers shifting focus towards small box development.

76. E.g. Asda Leeds: 50,000 sq ft centre housing 500 colleagues.

77. Much more efficient – pickers pick twice as many orders per hour (approx 250 per hour) = fourfold increase in the # of delivery slots (anywhere between 12,000-15,000 per week using 50 vans).

78. Customers can have their bread baked to order. A full state-of-the-art bakery is included - a colleague arrives at midnight and bakes only what's been ordered that day ensuring no waste.

80. Food market still the preserve of the big 5, but aggressive incursions from all sides.

81. Fastest growing food retailers are non-specialists.

82. Discount not the threat it was a year ago, but will steadily build market share.

83. Retailers becoming more innovative & collaborative to generate growth above & beyond new space.